Supreme Court rules tender conditions must be interpreted reasonably considering statutory deadlines - highest bidder wrongly excluded for not submitting ITR that wasn't yet due
IF YOU SUBMIT A TENDER BID IN JULY 2022 WITH INCOME TAX RETURN FOR FINANCIAL YEAR 2020-2021, CAN THE GOVERNMENT REJECT YOUR BID FOR NOT SUBMITTING ITR FOR 2021-2022 WHEN THE STATUTORY DEADLINE FOR FILING THAT RETURN IS OCTOBER 31, 2022?
NO, THEY CANNOT. The Supreme Court has ruled that tender conditions must be interpreted reasonably considering statutory deadlines. When a tender is floated in July 2022, the "previous Financial Year" reasonably means 2020-2021, not 2021-2022 for which the statutory filing deadline hasn't expired.
Tender Notice: Tehsildar issues auction notice for sand quarry lease
Bid Submission: 20 bidders submit bids including Shanti Construction (Rs.2127.27/m³) and successful bidder (Rs.1250/m³)
Tender Committee Meeting: Shanti Construction's bid declared non-responsive for not submitting ITR 2021-2022
Form-F Issued: Successful bidder receives Form-F and deposits Rs.1.26 crore
Writ Petition Filed: Shanti Construction challenges tender award in High Court
High Court Judgment: Upholds bid rejection but directs successful bidder to match highest price
Supreme Court Interim Order: Grants status quo on contract
Supreme Court Judgment: Sets aside High Court order, orders fresh tender
| Legal Argument | Basis in Law | Application in Your Case |
|---|---|---|
| Reasonable Interpretation | Article 14 Constitution | Tender conditions must be interpreted reasonably considering practical realities |
| Public Interest Protection | Public Trust Doctrine | Excluding highest bidder harms public revenue from natural resources |
| Harmonious Construction | Rule of Interpretation | Tender rules must be read with Income Tax Act deadlines |
| Arbitrary State Action | Article 14 Constitution | Narrow technical interpretation excluding competition is arbitrary |
The financial year immediately preceding the current financial year, to be interpreted reasonably considering statutory filing deadlines.
Legal principle that natural resources are held in trust by the State for public benefit and must yield maximum public value.
Government action that lacks rationality, fairness, or reasonableness, violating Article 14 of the Constitution.
Interpretation principle where different laws on the same subject should be read together to avoid conflicts.
Court's power to review government actions to ensure they comply with constitutional principles and laws.
"The reasonable understanding of the term 'previous Financial Year' must therefore, be treated to mean the year immediately preceding Financial Year... The Tender Committee has erroneously interpreted the tender condition which excludes the highest bidder and defeats the purpose of the tender."
This judgment establishes that tender conditions must be interpreted reasonably, considering statutory deadlines and practical realities. It protects bidders from arbitrary exclusions based on narrow technical interpretations and ensures that public tenders for natural resources achieve their fundamental purpose of maximizing public revenue through fair competition.
This content is for informational purposes only and does not constitute legal advice. Consult a qualified legal professional for specific legal guidance. The information provided is based on judicial interpretation and may be subject to changes in law.
Making Supreme Court judgments accessible and actionable for every Indian citizen navigating legal challenges.
This roadmap decodes a complex administrative law judgment to help businesses and citizens understand their rights in government tender processes. It empowers them to challenge arbitrary exclusions and ensure fair competition while protecting public interest in natural resource management.